SBI Announces Key Revisions to Cash Withdrawal Rules and Deposit Rates Starting October 1
State Bank of India (SBI), the nation’s largest lender, has announced significant changes to its banking policies, set to take effect from October 1. The updates primarily impact Basic Savings Bank Deposit (BSBD) account holders and reflect the bank’s broader strategy regarding service fees and deposit management.
New Cash Withdrawal Charges
Beginning October 1, SBI customers holding BSBD accounts opened through the bank’s branch channel will face new charges for frequent cash withdrawals. While customers will continue to enjoy four free cash withdrawals every month, any transaction exceeding this limit will incur a fee of Rs 15, plus applicable Goods and Services Tax (GST).
The bank took to social media platform X to clarify that these charges apply strictly to cash withdrawals. Digital transactions remain unaffected and will continue to be provided free of charge, with no limit on the number of transactions allowed.
In a notable shift regarding the Aadhaar Enabled Payment System (AePS), the bank has removed the previous exclusion that classified AePS transactions as digital. Under the revised guidelines, AePS transactions will now be treated differently and will be factored into the monthly limit for free withdrawals.
Adjustments to Bulk Term Deposit Rates
In addition to the fee structure changes, SBI recently updated its interest rates for domestic bulk term deposits of Rs 3 crore and above. These revisions, which came into effect on August 15, apply to both fresh deposits and the renewal of maturing deposits.
While rates for longer-term deposits remain stable, the bank has implemented downward adjustments for shorter-term tenures. For example, the interest rate for deposits between 7 and 14 days has been reduced to 4.25% for the public and 4.75% for senior citizens. Similarly, rates for tenures ranging from 15 days up to 210 days saw modest cuts, while deposits spanning one year to ten years remain unchanged.
The bank noted that a 1% premature penalty remains in effect for all new and renewed bulk term deposits across all tenures. Additionally, the SBI Green Rupee Term Deposit remains available for specific tenures of 1,111, 1,777, and 2,222 days.
Strong Financial Performance
The policy updates arrive on the heels of a strong fiscal showing. SBI recently reported a 10.23% year-on-year increase in net profit for the first quarter of FY27, reaching Rs 21,121 crore. This growth was fueled by a robust 14.9% increase in net interest income, which rose to Rs 46,992 crore, and a significant reduction in bad loan provisions.
Despite these positive financial indicators, the bank continues to refine its service infrastructure. Customers are encouraged to review their account types and transaction habits to avoid the SBI cash withdrawal rules that will take effect at the start of October. SBI shares remain a focal point for investors, recently trading at Rs 1,048.05 on the BSE.
